Norex and Tesla to merge

Seismic services company Norex Exploration Services has announced it will merge with Tesla Exploration, North AmericaÔÇÖs largest privately-held geophysical services provider.  The deal will leave Tesla shareholders with about 70 percent of the new company, which will be listed on the Toronto Stock Exchange. Norex shareholders will retain 30 percent of the combined business. The new company, which will operate as Tesla Exploration, will focus on growing its operations in Europe, Africa, Asia, North America and other international markets. Tesla, which is headquartered in Calgary, currently provides geophysical and related services in Canada, internationally through its subsidiary IMC Geophysics International and in the US through Tesla Exploration USA and Tesla Offshore. Calgary-based Norex and its division Conquest Seismic Services and US subsidiary, Conquest Seismic Services, provides land-based seismic data acquisition services in Canada and the US. The companies said the combination would create an internationally focused, financially strong geophysical services company that would capitalize on the existing strong fundamentals for global oil and natural gas development. Paul Crilly, president and CEO of Norex, stated: "This transaction is consistent with Norex's continuing consolidation strategy and its pursuit of international expansion. ÔÇ£Our long-term vision has been the creation of North America's premier seismic acquisition company, and the proposed combination, we believe, facilitates this." Richard Habiak, president and CEO of Tesla, added: "This transaction will create a leading geophysical services provider with strong operations internationally as well as a broad footprint in North America. ÔÇ£Tesla has been successful in achieving aggressive international growth throughout the past five years and we are excited to continue this growth through the combination of the operations and equipment of Tesla and Norex.ÔÇØ He concluded: ÔÇ£After the closing of the combination, Tesla will be the largest geophysical services provider in Canada." The combined company will have offices in Calgary, Alberta; Denver, Colorado; Houston, Texas; Baton Rouge, Louisiana; Horseheads, New York; Alfreton, UK; Addis Ababa, Ethiopia; and Jakarta, Indonesia. Services on offer will include data acquisition, interpretation, processing and marine hazard surveys. Its customer base will comprise major state-owned and independent exploration and production companies internationally as well as in North America.  *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *